Deal Provides Curaleaf Strategic Supply Chain
Advantage in Key Growth Markets of Germany, Poland, U.K. and Establishes Presence in
Australia and New
Zealand
NEW
YORK, March 19, 2024 /PRNewswire/ -- Curaleaf
Holdings, Inc. (TSX: CURA) (OTCQX: CURLF) ("Curaleaf" or the
"Company"), a leading international provider of consumer cannabis
products, today announced it has signed a deal to acquire Northern
Green Canada ("NGC"), a vertically integrated Canadian licensed
cannabis producer focused primarily on expanding in the
international market through its EU-GMP certification. NGC also
partners with Canadian GACP cultivators to produce and distribute
finished cannabis products to both the domestic and global
markets.
NGC is one of the few Canadian cultivators with EU-GMP
certification. As such, NGC has consistently supplied high THC,
non-irradiated flower to the German market, which is expected to
see exponential growth following the recent removal of cannabis
from the narcotics list. NGC is also increasingly supplying
Australia and New Zealand, the world's fastest-growing
cannabis markets.
Given NGC's longstanding role as a key supplier to Curaleaf's
Four20 brand, this acquisition marks a significant milestone in
Curaleaf's expansion strategy, particularly in Europe. By integrating NGC, Curaleaf can
significantly increase its European margins while extending its
global footprint across three continents: North America, Europe, and Australasia (Australia/New
Zealand). The deal provides Curaleaf International with
secure and consistent high quality indoor EU-GMP flower supply,
ensuring the leading position in the growing German market during a
critical juncture, while also allowing the Company to maintain
its leadership position in the U.K. and expand its first-mover
advantage into Poland.
Further, NGC's facility has both ample space and regulatory
certification available for modular build-out of additional grow
rooms, allowing for increased capacity.
Boris Jordan, Executive Chairman
of Curaleaf, stated, "We expect the NGC acquisition to be a highly
accretive deal that marks Curaleaf's first step into the
Australasian markets, creating a true global cannabis company with
global brands. It allows Curaleaf to safeguard our position in
Europe, enhancing our supply chain
while increasing our margins. The opportunity in Germany alone cannot be understated, and we
continue to prepare strategically for that moment and beyond. We
are committed to delivering the highest quality flower in every
market we operate, and we are thrilled to welcome the NGC team to
the Curaleaf International family."
Juan Martinez, Head of Curaleaf
International, added, "The NGC deal complements our Portuguese
cultivation and processing assets, which we continue to expand and
develop. With the addition of NGC's indoor non-irradiated flower,
coupled with existing production from Portugal that can be quintupled as demand
dictates, Curaleaf will have ample high quality GMP supply and
future expansion capacity to meet growing market needs. We
anticipate other EU countries to follow Germany's lead in advancing their medical
cannabis programs to increase patient access."
Lisa McCormack, President and CEO
of Northern Green Canada, said, "The NGC team is excited to become
a part of the Curaleaf family. As their longstanding commercial
partner, we believe we can help accelerate Curaleaf's growth in
global markets. We are committed to providing high quality GMP
products under the umbrella of the largest global cannabis company
in the world."
The deal is expected to close in the second quarter of 2024,
pending all regulatory approvals.
About Curaleaf Holdings
Curaleaf Holdings, Inc. (TSX: CURA) (OTCQX: CURLF) ("Curaleaf")
is a leading international provider of consumer products in
cannabis with a mission to enhance lives by cultivating, sharing
and celebrating the power of the plant. As a high-growth cannabis
company known for quality, expertise and reliability, the Company
and its brands, including Curaleaf, Select, Grassroots, JAMS, Find
and Zero Proof provide industry-leading service, product selection
and accessibility across the medical and adult-use markets. In
the United States, our brands are
sold in 17 states with operations encompassing 145 dispensaries.
Curaleaf International is the largest vertically integrated
cannabis company in Europe with a
unique supply and distribution network throughout the European
market, bringing together pioneering science and research with
cutting-edge cultivation, extraction and production. Curaleaf is
listed on the Toronto Stock Exchange under the symbol CURA and
trades on the OTCQX market under the symbol CURLF. For more
information, please visit https://ir.curaleaf.com,
About Northern Green Canada Inc.
Northern Green Canada
Inc. is a federally licensed, EU GMP-certified producer of medical
cannabis, focused on providing cannabis medications for a better
quality of life. Their experienced team of experts operates in an
EU GMP-certified, 2500 m2 (27,000 square foot) indoor growing and
25-ton processing facility with a 4275 m2 (46,000 square foot)
expansion capability. NGC was the first privately-owned
Canadian licensed producer of cannabis to have EU GMP certification
and in 2023 over 95% of their Revenue was attributed to
international markets.
FORWARD-LOOKING STATEMENTS
This media advisory contains forward-looking statements and
forward-looking information within the meaning of applicable
securities laws. These statements relate to future events or future
performance. All statements other than statements of historical
fact may be forward–looking statements or information. Generally,
forward-looking statements and information may be identified by the
use of forward-looking terminology such as "plans", "expects" or,
"proposed", "is expected", "intends", "anticipates", or "believes",
or variations of such words and phrases, or by the use of words or
phrases which state that certain actions, events or results may,
could, would, or might occur or be achieved. More particularly and
without limitation, this news release contains forward-looking
statements and information concerning Curaleaf's acquisition of
Northern Green Canada. Such forward-looking statements and
information reflect management's current beliefs and are based on
assumptions made by and information currently available to the
company with respect to the matter described in this new release.
Forward-looking statements involve risks and uncertainties, which
are based on current expectations as of the date of this release
and subject to known and unknown risks and uncertainties that could
cause actual results to differ materially from those expressed or
implied by such statements. Additional information about these
assumptions and risks and uncertainties is contained under "Risk
Factors and Uncertainties" in the Company's latest annual
information form filed May 1, 2023,
which is available under the Company's SEDAR profile at
http://www.sedar.com, and in other filings that the Company has
made and may make with applicable securities authorities in the
future. Forward-looking statements contained herein are made only
as to the date of this press release and we undertake no obligation
to update or revise any forward-looking statements whether as a
result of new information, future events or otherwise, except as
required by law. We caution investors not to place considerable
reliance on the forward-looking statements contained in this press
release. The Toronto Stock Exchange has not reviewed, approved, or
disapproved the content of this news release.
INVESTOR CONTACT
Curaleaf Holdings,
Inc.
Camilo Lyon, Chief Investment
Officer
IR@curaleaf.com
MEDIA CONTACT
Curaleaf Holdings, Inc.
Tracy Brady, SVP, Corporate
Communications
media@curaleaf.com
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SOURCE Curaleaf Holdings, Inc.